New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-07-18
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A MUCH NEEDED REFO2M

The difficulties in the way OF collecting
personal taxes under the existing laws ae
pretty well known No better ILLUSTRATION
is needed than the figures from the recently
completed rolls in the tax Office. Personal
property was assessed for taxation to the
amount Of $1,797. 91S,097. Only 10 per
cent of that amount was found taxable
Almost every person can avoid paying per
sonal tax. 1t is merely question as To
whether or not the amount OF the assessment
is large enough to make it worth while to go
to the trouble OF evading it. The temporary
purchase of Government bonds or other nOp-
taxable securities or even IN order given to
broker for their purchase. enables person
to escape. II is not question OF false swearing.
The loopholes in the statutes are numerous.
and even when no advantage is taken vi them
the law operates uneaually. This may be seen
in the case of the fire insurance companies.
Out of sixty three companies assessed for
persona! taxes TO the aggregate amount
of over $JO,OOO,OOO, thirty-seven c.
cape altogether, and the other twenty
six companies reduced their assess
mcnt to 1897, 749i and they have
anulicd to the courts for a still further reuc-
ton. Any one can see at glance that this
ia not equal taxation. Each one Of these
companies should pay the city proportionatc
amount Of tax OH its capital stock and bust
ness, or there should be no attempt to tax
them on personal property. They enjoy alike
the protection Of the city and the advantages
which it offers for the transaction oil their
business. But under the existing law the
company doing the most business pays on
5 per cent of its capital and surplus, while
the smallest one pays at rate nearly eleven
Tires higher at the same time many other
companies paying large dividends escape the
paymcnt Of any tax un der this law Widows
and orphans, heirs TO small estates, the records
of which arc in the Surrogatc's Office, have
TO nav ON the full amount. For them there
is no escape.
There is probably no law on the statute
books under which greater injustice is pcrpc-
trated than this one for the taxation Of per-
sonal property. Considering the exceedingly
small results obtained from it, many persons.
intending those who have had experience in
the tax Office. favor repealing the law so far
as it operates to tax such property In the hands
of individuals. Corporations should be taxed
on their business, capital stock and surplus.
or in some way which would operate equally.
Less than FER cent of the taxes is derived
from assessments en- personal property in
the hands of individuals. The loss from tais
would easily be made up from an equal assess-
nlent on such corporations as fire insurance
companies while the taxation of liquor shops
and "bucket" shops, as proposed by the last
Legislature, would more than make up the
loss. The need Of reform in this matter OF
personal taxation is indisputabe. The pas
sage of the ycdder bill was wise step in
that direction. unhappily defeated temporarily
by Governor Hill, The Senate COMMITTEE
on Taxation proposed TO devote some time
this summer TO maturing other measures to
meet this demand for reform. Governor
Hill sought by the use Of his veto power t.
prevent it by depnying it Of means for tins
payment Of III expenses. 1t will be we'll for
The public il tho opposition Of Governor Hill